At 10 am in Singapore (0200 GMT), the June/July Dubai crude futures spread was pegged at minus 12 cents/b, little changed from minus 11 cents/b assessed at last Friday’s Asian close at 4.30 pm in Singapore (0830 GMT).
Similarly, the July/August inter month spread was pegged at minus 34 cents/b at 10 am Tuesday morning. The spread was assessed at minus 31 cents/b last Friday.
However, outright prices were considerably higher, with July Dubai crude futures at $36.54/b Tuesday morning, more than $2/b higher from last Friday, when they were assessed at $34.53/b, Platts data showed.
The Dubai outright value outstripped similar gains in ICE Brent futures over the long weekend. The July Brent futures contract was pegged at $35.86/b Tuesday morning in Singapore, up $1.80/b from its assessed value of $34.06/b at Friday’s Asian close.
Furthermore, signs of escalating US-China tensions could dampen any improvement in oil demand seen post COVID-19, traders in Asia said on Tuesday.
US Secretary of State Mike Pompeo on Friday criticized China’s recent actions in Hong Kong, setting up a possible potential geopolitical confrontation that could quell oil market sentiment in the coming days.
Meanwhile, Middle East crude market participants in Asia are waiting for results of several tenders this week, among which is Taiwan’s CPC spot sour crude buy tender after several months of absence from the market.
Traders were also awaiting results of a Thailand buy-side tender, in which the state-run IRPC is expected to pick up light and medium sour crude cargoes.
Several Russian ESPO sell-side tenders had also concluded late Friday in Asia, with results expected to emerge in the spot market this week, they added.
Source: Platts
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